The home buying process can be stressful and at times rather intimidating, to say the least. It’s likely you don’t go around buying houses everyday; therefore, the process is probably not something you are extremely familiar with. And even if you’ve purchased a house before, it’s probably been a while. That means if you want to get through the entire home buying process as stress-free as possible, then you are going to need to take some time to properly prepare yourself before you begin.
How Should I Start the Home Buying Process?    Â
Before you do anything, you need to have a plan. Take some time to learn everything there is to know about buying a house. This exercise will help you mentally prepare for what lies ahead. Everything is hard when you don’t know what you are doing and the not knowing is what will cause you stress along what should be a fun and exciting journey. However, if you do your homework and take all the time you need to fully understand the process, you will breeze right through it like an old pro. And you will be less likely to make any major mistakes that could end up costing you thousands of dollars in the end. Therefore, you should start the home buying process long before you actually begin to give yourself enough time to learn everything you need to know.
How Do I Know If I Can Actually Afford a Home?
The majority of the stress that comes with the home buying process is understanding and meeting the financial requirements. Therefore, it’s best to be proactive when it comes to everything financial. You will need to start by determining what it is you want in your new home and study your local housing market to get an idea of about how much that will cost. Then you need to assess your current budget to see if you can afford everything you want. If so, you’re good to go. If not, then you have some work to do.
1. Buying a home starts with saving money for a down payment, unless you are going to use the equity you have in your current home as a down payment for your new one. Or, you might need more money down for your new home than you have in equity. Whatever the case may be, you will need to look at your current budget to see what cuts can be made and put that money into a savings account for your new home. You could also take on some extra work, etc. until you have reached your down payment goal.
2. Another issue you will need to tackle before you get started with the home buying process is to check your credit score on all three credit bureaus, which are Experian, TransUnion, and Equifax. If you find mistakes or if your credit is a bit shaky, then you might need to start cleaning up your credit years before you attempt to buy a house, especially if you want to be approved for the amount you need for your new home and to get the best possible interest rate.
3. The next thing you will need to do is talk with a lender to obtain a pre-approval for a home loan. This will give you an idea about how much you qualify for, how much you will need to put down, and it will also give you more leverage once you’re ready to submit an offer on a home.
What Documents Will I Need for the Home Buying Process?
By the time you are through with the home buying process you are going to be extremely weary of any and all paperwork. The home buying process is long and tedious and requires mountains of paperwork before it’s all said and done. Here is a sample of some of the documents you might need.
- Bank statements
- Proof of funds
- Proof of income
- Tax returns
- Current check stubs
- Copies of paid down bills
- Divorce decrees
- Drivers license copies
- Proof that your down payment funds aren’t from a loan
- Bankruptcy discharge papers, etc.
What are the Most Effective Ways to Avoid the Stress of Buying a Home?
Being prepared is probably the best way to avoid the stress of buying a home, but there are some other things you can do, as well, such as being flexible with your expectations and timelines. Generally, not every house you look at will have everything on your wish list; therefore, the sooner you realize this, the more content you will be once you have found a house that has the most important things on your list.
You will also quickly learn that seldomly does everything go exactly as you have planned, which means you will need to be flexible, and the more prepared you are to be flexible, the less stress you will encounter in the long run. And that could mean anything from dealing with home inspection issues, a difficult seller, mortgage company delays, closing dates, contingencies, approvals or any of the many other things that will make you want to pull your hair out.
Being prepared for unexpected expenses is another way to enjoy a stress-free home buying process. The mortgage for your house will include other expenses, such as: property taxes, homeowners insurance, and PMI. These requirements will be added to your monthly mortgage payments. You should also expect additional and maybe even higher utility payments for electric, water, sewer, trash, cable, etc. There might also be a homeowners association fee. If you don’t have lawn equipment, you will have to purchase those as well. And don’t forget the moving expenses, deposits, new appliances (if needed), window coverings, etc. There is also the possibility that you will, sooner rather than later, have to do some major or minor repairs and almost everyone wants to add some cosmetic touches to their new home, such as paint and other home decor. Therefore, you should plan for those expenses as well.
What’s the Bottom Line?
The best way to experience a stress-free home buying process is to learn everything you can about it, have a plan and be prepared for the expected, as well as the unexpected. If you do those things, you will greatly reduce your chances of running into any major roadblocks. And even if issues do arise, as long as you are prepared, you shouldn’t have any problems overcoming them.
2 Point Highlight
1. Â The majority of the stress that comes with the home buying process is understanding and meeting the financial requirements.
2. Being prepared is probably the best way to avoid the stress of buying a home, but there are some other things you can do as well, such as being flexible with your expectations and timelines.
